Do you ever feel like you’re on auto-pilot regarding your financial affairs? You know what I mean- you spend countless hours perfecting your budget, saving money, and planning for the future. And yet, all the while, there’s an elusive feeling that something is missing. For some of us, it might be automation. For others, it might be in-house accounting software. Whatever the case, we’ve all heard the saying “a picture is worth a thousand words” many times already. Well, imagine if that were literally true when it came to finances as well. Financial statements can look very different depending on who’s doing the looking and what they’re seeing. Automated accounting services could come in handy if you run a small business or need an accessible way to keep tabs on your finances each month. So here are 5 reasons why you should consider using an online accounting service instead of manual methods:
What is automated accounting?
Automated accounting refers to managing the accounting process with the help of computers and software. Accounting software helps track and record your business transactions and generate accurate and timely financial statements. It takes care of the repetitive accounting tasks, providing you time to focus on core business activities. You can manage the automated accounting services by hiring in-house personnel or outsourcing it to a third party. You can choose which accounting software suits your business best by determining your needs and comparing the various software options such as QuickBooks accounting, Xero accounting, FreshBooks accounting, Zoho accounting, etc.
5 reasons to use automated accounting services
Manual accounting has now become a thing of the past as automated accounting services have pushed their way to the frontlines. Automated accounting uses technology to streamline the accounting process by overtaking repetitive manual tasks and processing them accurately and speedily. Following are the tops reasons why you should switch from manual to automated accounting:
As a business owner, you’re probably well aware of the importance of being organised. Weeding through mountains of emails, dings, and dabs of paper could take all day or even the rest of the week. Quick online accounting and bookkeeping services could help you stay on top of everything. You could easily save the hours and days it would take you to shift through emails and find the data you need. Even among the online accounting services, cloud-based accounting software are the most preferred these days. They store all business data in the cloud server that you can access from anywhere at any time.
2.Better cash flow management-
Maintaining a steady cash flow is one of the essential tasks for a business to achieve profitability. However, many businesses struggle to manage cash flow accurately. There may be times when you have no idea how much cash is coming in and how much you are paying. It is one such situation where automated accounting services come as a boon. They help track all the accounts payables, accounts receivables, payroll, and other business incomes and expenses to give you an accurate picture of your cash status. Real-time knowledge about the financial numbers helps you manage the operations and other functions to improve your cash flow process and status.
3.You save money and time-
When you use an online accounting service, you might save a small fortune. You might only need to pay for the software every so often, and everything will be available online. When you use an online accounting service, there are no paper trails or physical assets to deal with. You need to download the software, run it on your computer, and access the generated data online. In the end, you’ll have everything you need to analyse your finances and track your progress without dealing with books, paper trails, or human error.
4.Simplifies the tax filing process-
As automated accounting and bookkeeping services record transactions and prepare financial statements for your business, they simplify the tax filing process. All the receipts and invoices are tracked and entered into the system accurately and systematically, making it easy to verify their credibility. Accurately and timely completion of the books of accounts makes it easier for you to file taxes on time and correctly. It simplifies the entire process and helps you to avoid tax fines and penalties.
When dealing with manual accounting, the number of transactions increases and the chances of errors increase. The automated accounting services allow you to integrate your software with other tools, ensuring the data is recorded promptly and accurately. In case of any errors in the books of accounts, the accounting software conducts reconciliations to make the corrections.
6.You know exactly what changes will impact your financial statements the most-
As the business grows, you might have to track over 100 different clients. You would want to stay ahead of the game and ensure all necessary deductions and credits are taken care of. You also don’t want to miss a payment or incur interest charges because you were too busy worrying about your other accounts. On the other hand, you don’t want to miss a single payment either, so you’ll want to plan. Planning for the worst and having strategies could save you from a lot of trouble in the future. Automated accounting offers a real-time accounting report that can be accessed from anywhere at any time, providing flexibility to be prepared at all times.
So, you should know a few things about automated accounting services before considering using them. First and foremost, you should know that you’re not alone in feeling like something is missing in your financial life. Automation is an essential part of financial management, and there are many benefits to using an online accounting service instead of manual methods. Whether you’re a business owner or an accounting manager, using an online accounting service could save you time and money in the long run.